Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/27160

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DC Field

Value

Language

dc.contributor.author

Pope, Robin

en_US

dc.contributor.author

Selten, Reinhard

en_US

dc.contributor.author

Kaiser, Johannes

en_US

dc.contributor.author

Kube, Sebastian

en_US

dc.contributor.author

von Hagen, Jürgen

en_US

dc.date.accessioned

2008-01-23

en_US

dc.date.accessioned

2009-08-06T12:40:52Z

-

dc.date.available

2009-08-06T12:40:52Z

-

dc.date.issued

2007

en_US

dc.identifier.uri

http://hdl.handle.net/10419/27160

-

dc.description.abstract

The paper traces the dangers in the closed economy perspective of a monetary policy focused on adomestic inflation goal under a clean float. Field evidence of the damage wrought from this perspective isreinforced by that from a laboratory experiment. The laboratory experiment avoids measurement errors towhich econometric estimation is subject concerning omitted or inadequately proxied determinants, nonnormallydistributed errors, inadequate degrees of freedom, false assumptions of temporal independenceand false synchronicity in decision response lags to stimuli. Our laboratory experiment also embeds a newtheory of exchange rate determination involving the uncontroversial power of fully cooperating centralbanks to totally fix the exchange rate. The new model is within a broader theory that includes risk effectsnormally excluded, SKAT, the Stages of Knowledge Ahead Theory. We use SKAT to analyse outliers inour experimental results, and indicate some new directions and foci for econometric work. Our laboratoryresults point to the superiority of dollarisation, currency unions, a single world money over even dirtyfloats that include the exchange rate as an objective in its own right.

en_US

dc.language.iso

eng

en_US

dc.publisher

|aGraduate School of Economics|cBonn

en_US

dc.relation.ispartofseries

|aBonn econ discussion papers|x2007,19

en_US

dc.subject.jel

D80

en_US

dc.subject.jel

F31

en_US

dc.subject.ddc

330

en_US

dc.subject.keyword

outliers analysis

en_US

dc.subject.keyword

clean float

en_US

dc.subject.keyword

dirty float

en_US

dc.subject.keyword

IMF

en_US

dc.subject.keyword

exchange rate regime

en_US

dc.subject.keyword

exchange rate volatility

en_US

dc.subject.keyword

experiment

en_US

dc.subject.keyword

SKAT the Stages of Knowledge Ahead Theory

en_US

dc.subject.keyword

monetary policy

en_US

dc.subject.keyword

transparent policy

en_US

dc.subject.keyword

exchange rate shocks

en_US

dc.subject.keyword

central bank cooperation

en_US

dc.subject.keyword

central bank conflict

en_US

dc.subject.keyword

beggar thy neighbor

en_US

dc.subject.stw

Flexibler Wechselkurs

en_US

dc.subject.stw

Wechselkurssystem

en_US

dc.subject.stw

Inflationsbekämpfung

en_US

dc.subject.stw

Offene Volkswirtschaft

en_US

dc.subject.stw

Wechselkurstheorie

en_US

dc.subject.stw

Test

en_US

dc.subject.stw

Internationale Währungspolitik

en_US

dc.subject.stw

Theorie

en_US

dc.title

The damage from clean floats : from an anti-inflationary monetary policy